Investment Rating - The report assigns a "Neutral" investment rating to the company, 东方甄选 (1797 HK), with a target price of HKD 15.60, indicating a potential downside of 3.6% from the current price of HKD 16.18 [1][2][11]. Core Insights - The company's short-term financial performance is expected to be impacted by business adjustments, but there are signs of operational recovery. The focus will be on enhancing self-operated products, brand influence, and expanding APP membership, particularly through collaboration with New Oriental Group [1][6]. - The financial forecasts for FY2025 show a revenue of RMB 4,710 million, a slight increase of 1.8% from previous estimates, while gross profit is expected to rise significantly by 46.0% to RMB 1,486 million [5][13]. - The gross margin is projected to improve to 31.5% in FY2025, up from 22.0% in the previous forecast, reflecting a recovery in self-operated products [5][13]. Financial Data Summary - Revenue for FY2025 is estimated at RMB 4,710 million, with a gross profit of RMB 1,486 million and a gross margin of 31.5% [5][13]. - The adjusted operating profit is forecasted to be RMB 64 million, a significant decrease of 78.4% compared to previous estimates, indicating challenges in operational efficiency [5][13]. - The net profit attributable to shareholders is expected to be RMB 76 million for FY2025, down 77.5% from prior estimates, reflecting the impact of strategic adjustments [5][13]. Market Performance - The company's market capitalization is approximately HKD 16,758.76 million, with a 52-week high of HKD 28.90 and a low of HKD 9.50 [4][11]. - The year-to-date stock price change is reported at -10.01%, indicating a challenging market environment [4][11].
东方甄选：业务调整拖累短期业绩表现，毛利润率恢复增长